CRA Audits

CRA Audit Representation & Defense

A Canada Revenue Agency (CRA) audit is a formal review of an individual’s or business’s tax filings to ensure accuracy and compliance with Canadian tax laws. Audits can be stressful and time-consuming, often leading to reassessments, penalties, and additional tax liabilities. At KR Law Firm, our tax lawyers provide strategic CRA audit defense services to protect your financial interests, reduce liabilities, and ensure a fair audit process.

Why Does the CRA Conduct Audits?

The CRA selects taxpayers for audits for various reasons, including:

• Random Selection & Risk-Based Reviews: Some audits are conducted randomly, while others are based on risk indicators.
• Inconsistencies in Tax Returns: Discrepancies between reported income and third-party information may trigger an audit.
• Industry & Business Type: Certain industries, such as cash-intensive businesses, are more likely to be audited.
• Large Deductions & Credits: Claiming unusually high deductions or tax credits compared to industry standards can prompt a review.
• Previous Non-Compliance: Past audits, late filings, or outstanding tax debts increase the likelihood of an audit.

For more details on CRA audit selection criteria, visit the official CRA Audit Guide.

Our Approach to CRA Audits

1. Initial Audit Assessment & Strategy Development
When you receive a CRA audit notice, our first step is to conduct a comprehensive assessment of your tax situation. We:

• Analyze the scope and focus of the audit.
• Review all tax filings and financial records for potential red flags.
• Develop a defense strategy to prevent unnecessary tax reassessments.

2. Direct Representation & CRA Communication
Our tax lawyers act as your authorized representatives, handling all CRA communications, meetings, and document submissions. This ensures:

• Your rights are fully protected.
• The audit process remains fair and follows CRA guidelines.
• All required documents are provided accurately and in a timely manner.

3. Challenging CRA Audit Findings
If the CRA identifies discrepancies, we:

• Review and dispute inaccuracies in the auditor’s findings.
• Present legal arguments and supporting evidence to counter tax reassessments.
• Ensure that only legitimate and legally justified tax adjustments are applied.

4. Negotiating Reductions & Settlements
If additional tax liabilities are assessed, we negotiate with the CRA to:

• Reduce or eliminate tax penalties.
• Secure interest relief or tax payment plans.
• Minimize financial impact while ensuring compliance with tax laws.

5. Post-Audit Compliance & Preventative Measures
After the audit is completed, we provide:

• Guidance on necessary tax adjustments and compliance measures.
• Strategies to prevent future audits and tax disputes.
• Recommendations for improved record-keeping and tax filing practices.

Types of CRA Audits We Handle

Our tax lawyers are experienced in various types of CRA audits, including:

• Personal & Business Audits: Self-employed individuals, small businesses, corporations.
• GST/HST Audits: Ensuring compliance with tax obligations on goods and services.
• Payroll & Employment Audits: Reviewing payroll deductions and employer contributions.
• International Tax Audits: Offshore income, foreign assets, and cross-border tax compliance.
• Real Estate & Investment Audits: Tax implications for property sales, rental income, and investment gains.

Why Choose KR Law Firm for CRA Audit Defense?

• Extensive Experience in CRA Disputes – We have a deep understanding of audit procedures and tax law.
• Aggressive & Proactive Defense Strategies – We challenge unfair assessments to minimize tax liability.
• Full-Service Legal Representation – From initial CRA notices to audit appeals and tax litigation.
• Long-Term Compliance Solutions – Helping clients maintain compliance and avoid future audits.

Need Assistance with a CRA Audit? Contact Us Today.

If you’ve received a CRA audit notice or are currently undergoing an audit, take action immediately. Contact KR Law Firm for a Free consultation to protect your rights and minimize financial exposure.